4. Farber Company uses a job order cost system. The information below is from the financial records of the company for last year:

Total manufacturing costs $2,500,000

Cost of goods manufactured $2,425,000

Predetermined overhead rate 80% of direct labor cost

Applied overhead was 30% of total manufacturing costs. The Work in Process inventory at January 1 was 75% of the Work in Process inventory at December 31.

Farber Company's total direct labor cost was:

1. $750,000.

2. $600,000.

3. $900,000.

4. $937,500.

5. Dukes Company used a predetermined overhead rate this year of $2 per direct labor hour, based on an estimate of 20,000 direct labor hours to be worked during the year. Actual costs and activity during the year were:

Actual manufacturing overhead cost incurred $38,000

Actual direct labor hours worked 18,500

The under&#8209; or overapplied overhead for the year was:

1. $1,000 underapplied.

2. $1,000 overapplied.

3. $3,000 underapplied.

4. $3,000 overapplied.

6. Krumbly Company uses the FIFO method in its process costing system. At the beginning of the month, Department D's work in process inventory contained 2,000 units. These units were fully complete with respect to materials and 40% complete with respect to conversion costs, with a total cost at that point of $3,600. During the month, conversion costs amounted to $8 per equivalent unit of production. If all 2,000 units are fully complete by the end of the month, their total cost by that time will be:

1. $19,600.

2. $10,000.

3. $13,200.

4. $9,000.

7. Details of the manufacturing activity in Amy Company's Assembly Department for the month of December are given below: